Binance is making significant changes to its LUNC burns in response to the token reprint.
Binance has given this date for LUNC
Cryptocurrency exchange Binance will delay the next LUNC burn to March. Binance has changed the burning rules for Terra Classic (LUNC) trading fees, according to the post from the exchange today. Beginning in December, only 50% of all LUNC spot and margin trading fees will be burned instead of 100%. Additionally, it will postpone the next batch of LUNC incineration to March 1, 2023. Previously, it was planned to carry out the next batch of LUNC incineration on January 1, 2023.
In response to Terra Classic offerings 10983 and 11111, the crypto exchange said that it is postponing the next burn to prevent LUNC burns from becoming part of token reissues. To this end, the exchange wants to create a burn wallet that will not be subject to token reissue. He said he was in contact with the Terra Grants Foundation for this. Also, Binance wants its wallet to be exempt from the 0.2% chain tax. According to the crypto exchange, this is in line with the community’s original desire to reduce the supply of LUNC.
LUNC burns to begin
The crypto exchange remains the largest LUNC burner with over 20 billion burnt LUNCs representing over 50% of all LUNC burns. The exchange implemented burn in LUNC transaction fees in September in response to the community’s request for LUNC burn support. So far, they have sacrificed millions of dollars to support the cause of reducing the LUNC supply. However, recent controversial proposals have put this support to the test. Proposal 10983 recommended that the community reprint 50% of all LUNC burns instead of 10% (including Binance burns) to strengthen the community pool and fundraising. The proposal considers filling the lack of funding for the Terra Classic development activity. However, the proposal drew the ire of members of the community who believed it could jeopardize their relationship with volunteer supporters like Binance.
However, despite these concerns, the proposal was accepted. It caused Matt’s Market to submit proposal 11111, which was recently adopted to repeal the provisions of 10983. Binance has stopped LUNC burns in response to these offers, as some had previously feared. However, in this case, the crypto exchange had to rethink its approach. Not surprisingly, many are dissatisfied with the result. But many are grateful for the continued support. In response to the Binance update, Terra Grants Foundation director Edward Kim launched a proposal to exclude voluntary LUNC burns from seigniorage. Instead, the Terra Classic core developer suggests that the community should only reprint 50% of the burns from the on-chain tax parameter.